Facebook Could Earn Billions by 2014 without Ads

There has been plenty of talk about how Facebook will generate revenue and much debate about its valuation. Now one of the social-networking giant’s board members is making a bold prediction: Facebook will be hauling in billions of dollars in as little as five years.

The prediction came from Mark Andreessen, who just launched a Silicon Valley venture-capital firm to focus on innovative technology startups. Andreessen told Reuters that Facebook could break the $1 billion mark this year if it pushed hard to sell advertising. He expects Facebook to generate $500 million in 2009.

Andreessen is not just another venture capitalist. He’s an Internet innovator. Andreessen founded Netscape Communications and built the first Web browser, an achievement that paved the way for the widespread use of the Internet.

“There’s every reason to expect, in my view, that the thing can be doing billions in revenue five years from now,” Andreessen told Reuters. His other predictions: MySpace may not be able to rebound, Twitter isn’t making a mistake by not focusing on making money, and it’s a mistake to sell your stock in Facebook.

What Does ‘Billions’ Mean?

“I don’t disagree with that as a hypothetical matter,” said Greg Sterling, principal analyst at Sterling Market Intelligence. “Billions can be 1.4 billion, $5 billion, or $10 billion.”

Sterling’s view isn’t because Facebook is an advertising giant like Google. In fact, in his talks with companies large and small, he’s heard mixed reports about the effectiveness of advertising on Facebook. Although Facebook will be a critical piece of every online marketer’s strategy in one way or another, he said that doesn’t necessarily mandate selling ads.

“Incorporating Facebook into your marketing plan is already a must-do for most folks who understand it, simply because there are so many people on Facebook,” Sterling said. “Marketing on Facebook is happening…